Churchill Downs Incorporated (CHDN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 175,500 | 144,500 | 129,800 | 291,300 | 67,400 |
| Short-term investments | US$ in thousands | — | — | — | — | 630,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 89,900 | 755,800 | 621,600 | 395,000 | 424,200 |
| Quick ratio | 1.95 | 0.19 | 0.21 | 0.74 | 1.64 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($175,500K
+ $—K
+ $—K)
÷ $89,900K
= 1.95
The quick ratio of Churchill Downs Incorporated shows a fluctuating trend over the years. Starting at a relatively healthy level of 1.64 on December 31, 2020, the ratio declined significantly to 0.74 on December 31, 2021, indicating a potential liquidity strain. Subsequently, the ratio further plummeted to 0.21 on December 31, 2022, and decreased slightly to 0.19 on December 31, 2023, signaling a continued decrease in the company's ability to meet short-term obligations with its most liquid assets.
However, there was a notable improvement as the quick ratio surged to a high level of 1.95 on December 31, 2024, suggesting a strengthened liquidity position. This significant increase in the quick ratio could indicate better management of current liabilities or an increase in highly liquid assets, portraying a favorable outlook for Churchill Downs Incorporated's ability to cover short-term financial obligations with its current liquid assets.